Milan (Italy) – Italy’s public deficit dropped more than expected in 2024, reaching 3.4% of GDP, compared to 7.2% in 2023, the Italian National Institute of Statistics (Istat) announced on Monday. This figure is lower than the 3.8% forecasted by the government of Giorgia Meloni.
Italy’s economic growth was also revised upward by Istat, with GDP increasing by 0.7% in 2024, the same rate as in 2023. This contrasts with the initial estimate of 0.5% made in January, though it still falls short of the government’s 1% projection. Rome aims to reduce the deficit to 2.8% of GDP by 2026, below the 3% threshold set by the European Stability Pact, leaving little room for expansionary economic policies.
Under pressure from the EU due to its excessive public deficit, Italy faces significant challenges in stabilizing its finances and addressing its massive public debt, nearing €3 trillion. The deficit had already seen a notable drop in the third quarter of 2024, reaching 2.3% of GDP compared to 6.3% in the same period in 2023, partly due to increased tax revenues. Looking ahead, the Meloni government now expects GDP growth of 1.2% in 2025 and 1.1% in 2026.
